Solomon Lew, owner of Premier Investments is setting up an extraordinary general meeting with reports stating he is planning to oust the Myer board and replace the members with his own directors.
The Australian reports the company has asked the Myer share register to “facilitate engagement” on an EGM where a vote to reconstitute the company’s board can be taken.
As Myer’s largest investor, Premier Investments have been butting heads with the department store for a while.
In a statement Premier says, “Premier strongly believes that a new Myer board with relevant expertise and experience in retail, property and business is required as a matter of urgency.
“It is not in the best interests of shareholders that the current Myer board be allowed to preside over another year of declining sales, eroding profits and further share price deterioration before urgently needed change is introduced.”
Myer has been struggling over the past couple of months after it issued its second profit warning of 2017 to its shareholders two weeks before Christmas, resulting in its price share plummeting 12 per cent to a record low of 63.5c.
With the introduction of Amazon Australia at the end of 2017, Myer’s shares have dropped while other retailers such as Kogan and JB Hi-Fi are keeping up with the online giant.
More to come.
